CA-GILEAD-SCIENCES

Gilead Sciences, Inc. (Nasdaq: GILD) announced today its results of
operations for the fourth quarter and full year 2016. Total revenues for
the fourth quarter of 2016 were $7.3 billion, compared to $8.5 billion
for the same period in 2015. Net income for the fourth quarter of 2016
was $3.1 billion, or $2.34 per diluted share, compared to $4.7 billion,
or $3.18 per diluted share for the same period in 2015. Non-GAAP net
income, which excludes amounts related to acquisition-related, up-front
collaboration, stock-based compensation and other expenses, for the
fourth quarter of 2016 was $3.6 billion, or $2.70 per diluted share,
compared to $4.9 billion, or $3.32 per diluted share for the same period
in 2015.

Full year 2016 total revenues were $30.4 billion, compared to $32.6
billion for 2015. Net income for 2016 was $13.5 billion, or $9.94 per
diluted share, compared to $18.1 billion, or $11.91 per diluted share
for 2015. Non-GAAP net income for 2016, which excludes amounts related
to acquisition-related, up-front collaboration, stock-based compensation
and other expenses, was $15.7 billion, or $11.57 per diluted share,
compared to $19.2 billion, or $12.61 per diluted share for 2015.

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(In millions, except per share amounts)

2016

2015

2016

2015

Product sales

$

7,216

$

8,409

$

29,953

$

32,151

Royalty, contract and other revenues

104

97

437

488

Total revenues

$

7,320

$

8,506

$

30,390

$

32,639

Net income attributable to Gilead

$

3,108

$

4,683

$

13,501

$

18,108

Non-GAAP net income*

$

3,585

$

4,889

$

15,713

$

19,174

Diluted earnings per share

$

2.34

$

3.18

$

9.94

$

11.91

Non-GAAP diluted earnings per share*

$

2.70

$

3.32

$

11.57

$

12.61

*Non-GAAP net income and non-GAAP diluted earnings per share
exclude acquisition-related, up-front collaboration, stock-based
compensation and other expenses. A reconciliation between GAAP and
non-GAAP financial information is provided in the tables on pages 7 and
8.

Product Sales

Total product sales for the fourth quarter of 2016 were $7.2 billion,
compared to $8.4 billion for the same period in 2015. Product sales for
the fourth quarter of 2016 were $4.9 billion in the United States, $1.4
billion in Europe, $314 million in Japan and $556 million in other
locations. Product sales for the fourth quarter of 2015 were $4.8
billion in the United States, $1.7 billion in Europe, $1.4 billion in
Japan and $565 million in other locations.

Total product sales during 2016 were $30.0 billion, compared to $32.2
billion in 2015. For 2016, product sales were $19.3 billion in the
United States, $6.1 billion in Europe, $2.5 billion in Japan and $2.1
billion in other locations. For 2015, product sales were $21.2 billion
in the United States, $7.2 billion in Europe, $1.9 billion in Japan and
$1.9 billion in other locations.

Antiviral Product Sales

Antiviral product sales, which include sales of our HIV and other
antiviral products and our chronic hepatitis C (HCV) products, were $6.6
billion for the fourth quarter of 2016, compared to $7.9 billion for the
same period in 2015. For 2016, antiviral product sales were $27.7
billion, compared to $30.2 billion in 2015.

HIV and other antiviral product sales for the fourth quarter of 2016
were $3.4 billion, compared to $3.0 billion for the same period in
2015 and $12.9 billion for the full year 2016, compared to $11.1
billion in 2015. The increases were primarily due to the continued
uptake of our tenofovir alafenamide (TAF)-based products, Genvoya®
(elvitegravir 150 mg/cobicistat 150 mg/emtricitabine 200 mg/tenofovir
alafenamide 10 mg), Descovy®
(emtricitabine 200
mg/tenofovir alafenamide 25 mg) and Odefsey®
(emtricitabine
200 mg/rilpivirine 25 mg/tenofovir alafenamide 25 mg), partially
offset by decreases in sales of tenofovir disoproxil fumarate
(TDF)-based products.

HCV product sales, which consist of Harvoni®
(ledipasvir 90
mg/sofosbuvir 400 mg), Sovaldi®
(sofosbuvir 400 mg) and
Epclusa®
(sofosbuvir 400 mg/velpatasvir 100 mg), were $3.2
billion for the fourth quarter of 2016, compared to $4.9 billion for
the same period in 2015 and $14.8 billion for the full year 2016,
compared to $19.1 billion in 2015. The declines were due to lower
sales of Harvoni and Sovaldi, partially offset by sales of Epclusa,
which was launched in 2016 across various locations.

Other Product Sales

Other product sales, which include Letairis®
(ambrisentan),
Ranexa®
(ranolazine) and AmBisome®
(amphotericin B
for liposome injection), were $621 million for the fourth quarter of
2016, compared to $523 million for the same period in 2015. For 2016,
other product sales were $2.2 billion, compared to $1.9 billion in 2015.

Operating Expenses

Three Months Ended

Twelve Months Ended

December 31,

December 31,

(In millions)

2016

2015

2016

2015

Research and development (R&D) expenses

$

1,208

$

757

$

5,098

$

3,014

Non-GAAP R&D expenses*

$

959

$

779

$

3,749

$

2,845

Selling, general and administrative (SG&A) expenses

$

992

$

1,066

$

3,398

$

3,426

Non-GAAP SG&A expenses*

$

938

$

1,013

$

3,194

$

3,224

*Non-GAAP R&D and SG&A expenses exclude acquisition-related,
up-front collaboration, stock-based compensation and other expenses. A
reconciliation between GAAP and non-GAAP financial information is
provided in the tables on pages 7 and 8.

During the fourth quarter of 2016, compared to the same period in 2015:

R&D expenses for the fourth quarter of 2016 also include an impairment
charge related to in-process R&D (IPR&D).

For 2016 compared to 2015:

R&D expenses and non-GAAP R&D expenses*
increased
primarily due to the overall progression of Gilead’s clinical studies,
including ongoing milestone payments, and Gilead’s purchase of a U.S.
Food and Drug Administration (FDA) priority review voucher.

R&D expenses for 2016 also include up-front collaboration expenses
related to Gilead’s license and collaboration agreement with Galapagos
NV, purchase of Nimbus Apollo, Inc. and impairment charges related to
IPR&D.

SG&A expenses and non-GAAP SG&A expenses*
decreased
primarily due to lower branded prescription drug fee expense,
partially offset by higher costs to support Gilead’s product launches
and the geographic expansion of its business.

Cash, Cash Equivalents and Marketable Securities

As of December 31, 2016, Gilead had $32.4 billion of cash, cash
equivalents and marketable securities, compared to $26.2 billion as of
December 31, 2015, primarily due to the issuance of $5.0 billion
aggregate principal amount of senior unsecured notes in September 2016.
During 2016, Gilead generated $16.7 billion in operating cash flow,
utilized $11.0 billion to repurchase 123 million shares of its stock and
paid cash dividends of $2.5 billion.

*Non-GAAP product gross margin, R&D and SG&A expenses and
effective tax rate exclude acquisition-related, up-front collaboration,
stock-based compensation and other expenses. A reconciliation between
GAAP and non-GAAP full year 2017 guidance is provided in the tables on
page 9.

Corporate Highlights

Announced the promotion of James R. Meyers to Executive Vice
President, Worldwide Commercial Operations, in November 2016.

Product & Pipeline Updates announced by Gilead
during the Fourth Quarter of 2016 include:

Antiviral and Liver Diseases Programs

Announced that FDA and Japanese Ministry of Health, Labour and Welfare
approved Vemlidy® (tenofovir alafenamide) 25mg, a once-daily treatment
for adults with chronic hepatitis B virus (HBV) infection with
compensated liver disease. Additionally, the Committee for Medicinal
Products for Human Use, the scientific committee of the European
Medicines Agency, adopted a positive opinion on Gilead’s Marketing
Authorization Application for Vemlidy.

Announced the submission of a New Drug Application (NDA) to FDA for an
investigational, once-daily single-tablet regimen containing
sofosbuvir 400 mg, velpatasvir 100 mg, and voxilaprevir 100 mg for the
treatment of direct-acting antiviral (DAA)-experienced HCV-infected
patients. The data submitted in the NDA support the use of the regimen
for 12 weeks in DAA-experienced patients with genotype 1 to 6 HCV
infection without cirrhosis or with compensated cirrhosis.

Announced positive results from an open-label Phase 2 trial evaluating
the investigational apoptosis signal-regulating kinase 1 inhibitor
selonsertib (formerly GS-4997) alone or in combination with the
monoclonal antibody simtuzumab in patients with nonalcoholic
steatohepatitis and moderate to severe liver fibrosis (fibrosis stages
F2 or F3). The data demonstrate regression in fibrosis that was, in
parallel, associated with reductions in other measures of liver injury
in patients treated with selonsertib for 24 weeks. These data were
presented in a late-breaking abstract session at the Liver Meeting®
2016.

The information presented in this document has been prepared by Gilead
in accordance with U.S. generally accepted accounting principles (GAAP),
unless otherwise noted as non-GAAP. Management believes non-GAAP
information is useful for investors, when considered in conjunction with
Gilead’s GAAP financial information, because management uses such
information internally for its operating, budgeting and financial
planning purposes. Non-GAAP information is not prepared under a
comprehensive set of accounting rules and should only be used to
supplement an understanding of Gilead’s operating results as reported
under GAAP. Non-GAAP measures may be defined and calculated differently
by other companies in the same industry. A reconciliation between GAAP
and non-GAAP financial information is provided in the tables on pages 7,
8 and 9.

Conference Call

At 4:30 p.m. Eastern Time today, Gilead’s management will host a
conference call and a simultaneous webcast to discuss results from its
fourth quarter 2016 and full year 2016 as well as provide 2017 guidance
and a general business update. To access the webcast live via the
internet, please connect to the company’s website at www.gilead.com/investors
15 minutes prior to the conference call to ensure adequate time for any
software download that may be needed to hear the webcast. Alternatively,
please call 1-877-359-9508 (U.S.) or 1-224-357-2393 (international) and
dial the conference ID 43555238 to access the call.

A replay of the webcast will be archived on the company’s website for
one year, and a phone replay will be available approximately two hours
following the call through February 9, 2017. To access the phone replay,
please call 1-855-859-2056 (U.S.) or 1-404-537-3406 (international) and
dial the conference ID 43555238.

About Gilead

Gilead Sciences is a biopharmaceutical company that discovers, develops
and commercializes innovative therapeutics in areas of unmet medical
need. The company’s mission is to advance the care of patients suffering
from life-threatening diseases. Gilead has operations in more than 30
countries worldwide, with headquarters in Foster City, California.

Forward-looking Statements

Statements included in this press release that are not historical in
nature are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Gilead cautions readers that
forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially.
These risks and uncertainties include: Gilead’s ability to achieve its
anticipated full year 2017 financial results; Gilead’s ability to
sustain growth in revenues for its antiviral and other programs; the
risk that estimates of patients with HCV or anticipated patient demand
may not be accurate; the risk that private and public payers may be
reluctant to provide, or continue to provide, coverage or reimbursement
for new products, including Epclusa, Harvoni, Genvoya, Odefsey, Descovy
and Vemlidy; the potential for increased pricing pressure and
contracting pressure as well as decreased volume and market share from
additional competitive HCV launches; austerity measures in European
countries and Japan that may increase the amount of discount required on
Gilead’s products; an increase in discounts, chargebacks and rebates due
to ongoing contracts and future negotiations with commercial and
government payers; a larger than anticipated shift in payer mix to more
highly discounted payer segments and geographic regions and decreases in
treatment duration; availability of funding for state AIDS Drug
Assistance Programs (ADAPs) and Veterans Administration (VA); continued
fluctuations in ADAP and VA purchases driven by federal and state grant
cycles which may not mirror patient demand and may cause fluctuations in
Gilead’s earnings; market share and price erosion caused by the
introduction of generic versions of Viread and Truvada outside the
United States, an uncertain global macroeconomic environment; and
potential amendments to the Affordable Care Act or other government
action that could have the effect of lowering prices or reducing the
number of insured patients; the possibility of unfavorable results from
clinical trials involving investigational compounds; Gilead’s ability to
initiate clinical trials in its currently anticipated timeframes; the
levels of inventory held by wholesalers and retailers which may cause
fluctuations in Gilead’s earnings; Gilead’s ability to submit new drug
applications for new product candidates in the timelines currently
anticipated; Gilead’s ability to receive regulatory approvals in a
timely manner or at all, for new and current products, including its
single-tablet regimen containing sofosbuvir, velpatasvir and
voxilaprevir; Gilead’s ability to successfully commercialize its
products, including Epclusa, Harvoni, Genvoya, Odefsey, Descovy and
Vemlidy; the risk that physicians and patients may not see advantages of
these products over other therapies and may therefore be reluctant to
prescribe the products; Gilead’s ability to successfully develop its
oncology, inflammation, cardiovascular and respiratory programs; safety
and efficacy data from clinical studies may not warrant further
development of Gilead’s product candidates, including selonsertib;
Gilead’s ability to pay dividends or complete its share repurchase
program due to changes in its stock price, corporate or other market
conditions; fluctuations in the foreign exchange rate of the U.S. dollar
that may cause an unfavorable foreign currency exchange impact on
Gilead’s future revenues and pre-tax earnings; and other risks
identified from time to time in Gilead’s reports filed with the U.S.
Securities and Exchange Commission (SEC). In addition, Gilead makes
estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses and related disclosures. Gilead bases
its estimates on historical experience and on various other market
specific and other relevant assumptions that it believes to be
reasonable under the circumstances, the results of which form the basis
for making judgments about the carrying values of assets and liabilities
that are not readily apparent from other sources. Actual results may
differ significantly from these estimates. You are urged to consider
statements that include the words may, will, would, could, should,
might, believes, estimates, projects, potential, expects, plans,
anticipates, intends, continues, forecast, designed, goal, or the
negative of those words or other comparable words to be uncertain and
forward-looking. Gilead directs readers to its press releases, Quarterly
Report on Form 10-Q for the quarter ended September 30, 2016 and other
subsequent disclosure documents filed with the SEC. Gilead claims the
protection of the Safe Harbor contained in the Private Securities
Litigation Reform Act of 1995 for forward-looking statements.

All forward-looking statements are based on information currently
available to Gilead, and Gilead assumes no obligation to update any such
forward-looking statements.

ATRIPLA®
is a registered trademark of Bristol-Myers Squibb &
Gilead Sciences, LLC. LEXISCAN®
is a registered trademark of
Astellas U.S. LLC. MACUGEN®
is a registered trademark of
Eyetech, Inc. SUSTIVA®
is a registered trademark of
Bristol-Myers Squibb Pharma Company. TAMIFLU®
is a registered
trademark of Hoffmann-La Roche Inc.

For more information on Gilead Sciences, Inc., please visit www.gilead.com
or call the Gilead Public Affairs Department at 1-800-GILEAD-5
(1-800-445-3235).

GILEAD SCIENCES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(in millions, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2016

2015

2016

2015

Revenues:

Product sales

$

7,216

$

8,409

$

29,953

$

32,151

Royalty, contract and other revenues

104

97

437

488

Total revenues

7,320

8,506

30,390

32,639

Costs and expenses:

Cost of goods sold

1,075

1,062

4,261

4,006

Research and development expenses

1,208

757

5,098

3,014

Selling, general and administrative expenses

992

1,066

3,398

3,426

Total costs and expenses

3,275

2,885

12,757

10,446

Income from operations

4,045

5,621

17,633

22,193

Interest expense

(265

)

(230

)

(964

)

(688

)

Other income (expense), net

140

46

428

154

Income before provision for income taxes

3,920

5,437

17,097

21,659

Provision for income taxes

821

752

3,609

3,553

Net income

3,099

4,685

13,488

18,106

Net income (loss) attributable to noncontrolling interest

(9

)

2

(13

)

(2

)

Net income attributable to Gilead

$

3,108

$

4,683

$

13,501

$

18,108

Net income per share attributable to Gilead common stockholders -
basic

$

2.36

$

3.26

$

10.08

$

12.37

Shares used in per share calculation - basic

1,316

1,436

1,339

1,464

Net income per share attributable to Gilead common stockholders -
diluted